Legal Steps for Foreigners Buying Property in the UAE in 2025

The UAE real estate market continues to be one of the most attractive investment destinations for foreign buyers. With a tax-free environment, strong rental yields, and robust property laws, investing in the UAE offers long-term financial benefits. However, purchasing property as a foreigner requires following specific legal steps to ensure a seamless transaction.

This guide outlines the legal procedures, ownership types, required documentation, and key considerations when buying property in the UAE in 2025.

Can Foreigners Buy Property in the UAE? Yes, foreigners can buy property in the UAE, but only in designated freehold areas. The two main types of property ownership available to foreign investors are:

Freehold Ownership – Full property ownership with no time restrictions.
Leasehold Ownership – Long-term leases, typically ranging from 10 to 99 years.

Each emirate has different regulations regarding foreign ownership. Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah are among the most popular choices for international investors.

Legal Steps for Foreigners Buying Property in the UAE

1. Choose the Right Emirate and Ownership Type The first step is selecting the emirate and ownership type that aligns with your investment goals.

Dubai: Foreigners can buy freehold properties in areas like Downtown Dubai, Palm Jumeirah, Dubai Marina, and Business Bay.
Abu Dhabi: Freehold ownership is allowed in locations such as Saadiyat Island, Yas Island, and Al Raha Beach.
Sharjah & Ras Al Khaimah: Only leasehold properties (up to 99 years) are available for foreigners.

For complete ownership rights with no expiration, freehold properties in Dubai and Abu Dhabi are the best options.

2. Select a Property and Agree on Terms After choosing a location, the next step involves selecting a property and negotiating terms. This includes:

Researching reputable developers and real estate agencies registered with the Dubai Land Department (DLD) or the relevant authority in other emirates.
Verifying the property’s title deed and ensuring it is approved by authorities.
Negotiating the purchase price, payment schedule, and any additional costs.

3. Sign the Sales Agreement (Memorandum of Understanding – MOU) Once both parties agree on the price and terms, they sign a Memorandum of Understanding (MOU), which details:

Property specifications, including size, location, and price.
Payment terms and schedule.
Obligations of both the buyer and seller.
Deposit amount, typically 10% of the property price.

This agreement is signed in the presence of a registered real estate agent. At this stage, the buyer must pay a deposit to secure the property.

4. Apply for a No Objection Certificate (NOC) Before the property transfer can take place, the developer must issue a No Objection Certificate (NOC) confirming there are no outstanding service charges or liabilities.

The NOC is obtained from the property developer.
Processing time ranges from 5 to 7 working days.
Costs vary between AED 500 to AED 5,000, depending on the developer.

The NOC is mandatory for completing the property transfer at the Land Department.

5. Transfer of Ownership at the Land Department Once the NOC is received, the final step is transferring ownership at the Land Department (DLD in Dubai, ADM in Abu Dhabi). Required documents include:

Original title deed (from the seller).
MOU signed by both parties.
Original passports of both buyer and seller.
NOC from the developer.
Proof of payment (cheques or bank transfer receipts).

The buyer and seller must visit a Land Department office or a trustee center to complete the transaction. Some transactions in Dubai can also be processed online via the Dubai REST app.

Processing time: Typically completed within a day if all documents are in order.
Transfer fee: Ranges from 2% to 4% of the property price, varying by emirate.

6. Receive the Title Deed Once the ownership transfer is registered, the buyer is issued a Title Deed, officially confirming ownership.

Final costs at this stage include:

Transfer fee: 2%-4% of the property price.
Title deed issuance fee: AED 250 – AED 500.
Registration trustee fee: AED 4,000 (for properties over AED 500,000).

Additional Considerations for Foreign Buyers

1. Buying with a Mortgage Foreigners can finance their property purchase with a mortgage from a UAE bank, but conditions apply:

Resident Expats: Minimum down payment of 20%-25%.
Non-Residents: Minimum down payment of 50%.

Required mortgage documents include a passport, visa, proof of income, bank statements (6-12 months), and credit history.

2. Property Taxes and Fees While the UAE does not impose annual property taxes, buyers should be aware of additional costs:

Property Transfer Fee: 2%-4% of the property price.
Municipality Fee (for tenants): 3%-5% of annual rent.
Service Charges: AED 10-30 per sq. ft. depending on property type.
VAT on Commercial Properties: 5% VAT applies to commercial property sales.

3. UAE Golden Visa for Property Investors Foreign investors may qualify for the 10-year UAE Golden Visa if they:

Invest at least AED 2 million in property.
Own the property outright or finance it through a UAE bank.

The Golden Visa provides benefits such as long-term residency, business opportunities, and family sponsorship.

Final Thoughts Buying property in the UAE as a foreigner is a straightforward process if the correct legal steps are followed. The UAE offers lucrative investment opportunities, but buyers should:

Choose the right freehold area for long-term investment potential.
Work with registered real estate agents to avoid fraud.
Ensure all legal documentation and approvals are in place before completing the transaction.
Budget for service charges and transfer fees in addition to the property price.
Consider mortgage options and Golden Visa eligibility for long-term benefits.

Investing in the UAE real estate market in 2025 presents significant opportunities for foreign buyers, making it essential to navigate the legal process carefully to maximize returns.

If you are looking for expert guidance on buying property in the UAE, NAS Luxury Real Estate can help you find the perfect investment.